Tue, Oct 03, 2006 - Page 11 News List

Standard Chartered offer sends TAIEX up by 1.13 percent

AFP , TAIPEI

Share prices closed 1.13 percent higher yesterday, led by the financial sector after Standard Chartered Bank announced an offer to buy Hsinchu International Bank (新竹國際商銀) at a large premium, dealers said.

They said tourism-related stocks provided support on expectations of an influx of more Chinese visitors to Taiwan, with sentiment further buoyed by the government's decision to declare an extended holiday from Friday through next Tuesday.

The weighted index closed up 77.90 points at 6,960.95, after trading between 6,907.43 and 6,961.78, on turnover of NT$76.08 billion (US$2.29 billion).

The financial sector was up 3.19 percent and the electronic sector up 0.36 percent.

"Profit-taking earlier in the morning failed to undercut a still bullish market," said Alvin Teng (鄧可欣), a SinoPac Securities (建華證券) assistant vice president.

Standard Chartered's announcement of a plan to acquire Hsinchu International Bank at a big premium over its current market price helped offset investor caution over the fact the benchmark index was trading close to its next resistance level of 7,000 points, dealers said.

Teng said funds apparently flowed into financial shares and other non-tech stocks across the board, while the bellwether electronics sector also snapped a series of declines and ended firmer, with investors expecting a further market upside, given that the sector has trailed behind most of its international counterparts.

"Some profit-taking may be inevitable later this week ahead of the Oct. 6-10 holiday but that should not disrupt the upswing towards 7,500 points by the end of the year," Teng said.

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